Refer to the Graph Shown

question 115

Multiple Choice

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. In equilibrium, consumer surplus is equal to:

• A)1,500.
• B)2,500.
• C)3,500.
• D)5,000.

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Definitions:

Marketable Securities

Financial instruments and assets that can be easily converted into cash without significant loss of value.

Financing Activities

Transactions and events that affect long-term liabilities and equity, such as issuing debt or equity, repurchasing shares, and paying dividends.

Investing Activities

Transactions related to the acquisition or sale of long-term assets and investments not included in cash equivalents.

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company.